Valero Energy Partners LP (VLP
), a master limited partnership formed by parent company Valero, made its successful debut through an IPO in December.We view Valero's strategy of monetizing its midstream assets through a growth MLP as sound and believe VLP was set up as an entity that can rapidly grow cash flows and distribution for an extended time in multiple ways.We expect to see Valero sell mature assets to VLP, and develop new assets to sell to VLP over time. We also expect to see organic growth investment within VLP.
From Ron Baron
)'s Baron Funds fourth quarter 2013 commentary.